The new wave of affordable EVs boosts salary sacrifice appeal

Large electric SUV style cars, along with the Tesla Model 3, really led the way in the UK’s early adoption of electric vehicles (EVs). Company car drivers were keen to take the wheel of the new zero tailpipe emission vehicles, helped along by ultra benign benefit in kind taxation rules.

Now, we’ve got to the stage where the two millionth EV was registered during April and EVs took over 26% of the car market that month.

All of which is great news. But the move to electrification could do with progressing yet more swiftly. And there are signs that the pace is picking up.

The current price of fuel, thanks to the war in Iran, is certainly making people consider choosing electric power over a conventional combustion engine.

Fuel prices are up to bank account wilting prices. The RAC’s Fuel Price reports that unleaded is averaging 158p a litre while diesel is at 188p, and stepping over the 200p a litre boundary if you fuel up at a motorway service station (correct on 11 May 2026).

That translates into a £70 fill up for a 115PS 1.5 petrol Volkswagen Golf Hatch TSI Match and £132 for a diesel Mercedes-Benz E-Class Saloon E 220 in Exclusive Premium Plus trim.

Compare that to Scottish Power’s current bundled offer of just 5p a KWh. If you were driving an electric Renault 5 with the 40KWh battery, the full charge cost would be just…£2.

Yes, £2.

Little wonder, then,  that drivers are considering a switch to an electric car. The car dealer platform Autotrader found that April generated the highest number of enquiries about electric vehicles at 29%.

New EVs coming to market have real salary sacrifice appeal

But there’s more than just fuel prices that will enable a greater number of drivers to choose a more sustainable car. There’s a really exciting array of new and more affordable cars that are due to appear on the market, or are already available on drive choice lists. In particular, I see these being very popular with salary sacrifice takers who will be able to choose an electric car for less.

So what are the more affordable EVs arriving that are getting me excited?

Volkswagen Polo

This has to be top of the list. It will make a brilliant fleet car and an excellent salary sacrifice choice. The Polo has grown into the original Golf space and offers all the security, familiarity and prestige of the VW badge, but in an all-electric package. Maximum range is good for over 280 miles and the Polo is expected to come in under £25,000. Order yours from late summer for end of year delivery.

Volkswagen ID. 3 Neo

No apologies for selecting another Volkswagen. Like the Polo, the ID. 3 is the electric version of the Golf, and offers all the familiarity and feel-good factor of the Volkswagen nameplate.

But the new ID. 3 Neo is fundamentally updated. Where the ID. 3 prioritised a touch screen with menus and sub-menus that were difficult to follow and use, Volkswagen has listened to the criticism.

The touchscreen stays but the car welcomes back old school items such as physical buttons and a more tactile approach to everything you are likely to touch. What’s more the range has gone up hugely to 390 miles on a charge. Definitely one to watch.

Nissan Juke

Nissan brought quirky but distinctive styling to the small car segment with its SUV-styled Juke model in 2010 while the second generation model from the brand’s Sunderland factory arrived in 2019.

While the styling remains distinctive, the drivetrain is all-change as the Juke goes fully electric. It’s not a car for right now as it’s expected to launch in 2027. But it’s worth keeping in mind if you are planning ahead. Like its predecessors, the electric Nissan Juke will continue to be built in Sunderland.

Fiat Grande Panda

Fiat has pulled off another successful retro nod following the Fiat 500 with the new Grande Panda. Looking unmistakably modern, it has the shape, proportions and utilitarian character that made the 1980s original such a hit.

It’s big on a low price (starting from just under £21,000) and big on spacious practicality, too. A really smart choice for a salary sacrifice user where much of the driving will be local.

Renault 4 E-Tech

The more practical family transport choice if the fabulous Renault 5 doesn’t quite fit the bill, the Renault 4 E-Tech carries its retro past with a distinctive modern take, offering more practicality than its dimensions might suggest. It also comes with a useful 249 range to add to its attractiveness.

Skoda Equip

“With the Epiq, we’re taking another step towards making electric cars a practical and compelling choice for everyday drivers,” commented Skoda CEO Klaus Zellmer at the launch of the Equip, Skoda’s all-electric city car.

The Equip features Skoda’s new design profile – a sleeker, more modern appearance – and provides bundles of thoughtful practicality, as you might expect from a Skoda. Underneath it uses the new ID. Polo’s underpinnings, so expect some 264 miles of range when it becomes available early next year.

Making your choice of salary sacrifice car

If any of these cars appeal to you then you can find those available to lease now on our excellent salary sacrifice portal, along with a host of other cars you can compare with for affordability, range and suitability for your needs.

Fleet Alliance is part of the Global Vehicle Group, which together acquires 18,000 vehicles a year. It gives us huge buying scale which we can pass on to customers in terms of wider car choice and improved salary sacrifice lease rates.